Pelikan was founded in 1838 in Hanover, Germany as a
manufacturer of printing consumables and office and art equipment (Pelikan,
2011). The company registered its brand name in 1878 setting a platform for its
sustained growth into a multinational company (Pelikan, 2011). The company
would later merge with Nukote USA to form Pelikan Hardcopy in 1995. A
subsequent buyout in 1999 would see Pelikan Hardcopy be renamed Pelikan
Hardcopy International Ltd, a company whose main focus became the manufacture
and distribution of printer supplies (Pelikan, 2011). The products distributed
by Pelikan include Industrial thermal transfer ribbons, printer toners, white
label manufacturing, and equipment manufacturing. By 2004, the company had
expanded its operations on a global scale and was well on its way to
consolidate its position as a global player (Pelikan, 2011). As with any other
organization, expansion into a global player comes with challenges of
management especially where cultural practices in the new markets demand that
an organization adopts management practices that are in line with such cultural
practices. This research is conducted by an independent researcher and aims at
exploring the different management practices embraced by Pelikan Hardcopy
International Ltd in their Iran operations and compares them with the management
practices in their German branches with an aim to identifying the influence
that cultural practices can have on management styles in different countries. This
research title for this study shall therefore read as follows: Differences in
Business Management Styles in Iran and Germany: A case study of Pelikan
Hardcopy International Ltd.
This research investigates the management practices
in the two countries and in the process aims to identify the similarities and
differences in the management styles between Germany and Iran. In so doing, the
research will identify the underlying factors that influence these management
practices and try to estimate the effectiveness of the management practices
adopted in bringing about the level of performance targeted at Pelikan. With a
broad perspective in mind, the research shall identify the cultural practices
prevalent in both countries and identify how these practices can influence the
choice of a management style. Having drawn these comparisons, the research
shall attempt to match the cultural practices with corresponding best
management practices. In so doing, the research shall be able to draw
conclusions based on the limitations observed at Pelikan and make
recommendations on suitable management styles to adopt in order to ensure
sustainable high performance. The research shall therefore focus on answering
the following questions:
·
What distinguishing
management styles are practiced by Pelikan in Iran and in Germany?
·
What are the dominant
cultural dimensions of the two countries?
·
What is the link
between the cultural dimensions and the management styles observed?
·
What are the ideal
management practices for the corresponding cultural contexts of the two
countries?
·
What are the
limitations of the management styles currently practiced by Pelikan in Iran and
in Germany?
·
What recommendations
can be made to ensure higher levels of effectiveness in management in either
Germany, or Iran, or in both countries?
The research shall focus on proving the correctness
of the falseness thereof of the hypothesis which holds that: cultural practices
have and ought to have a significant bearing on the choice of business
management styles to be adopted in any society in order to ensure sustainable
good performance.
Management practices in any organization cannot be
arrived at arbitrarily. Sensible management teams must be keen to ensure that the
underlying reasons for choosing a certain management style in an organization
are both correct and accurate. The success of any organization is a broad
reflection on how it manages its human resources through the application of
sound management practices that are aimed at ensuring motivation, commitment,
and motivation of the human resources (Hofstede, 2001). There has been great
number of studies that have been aimed at exploring management styles and
leadership styles as influenced by different cultures in different countries.
These studies have mainly concentrated on general practices across industries
and have mainly grouped countries that are deemed to have similar
characteristics together. Although the grouping approach may yield certain
results, it may result in generalizations that may not be accurate as countries
will always have differences to some significant degree. Very few studies have
been done to compare management styles in Germany and Iran, and where any such
studies have existed, the focus has been on industry-wide analysis and not
purely based on a company that has its subsidiary in Iran and its main branch
in Germany. This study draws broad perceptions in its investigations while at
the same time remaining focused on Pelikan Hardcopy International Ltd. This
study is academically-oriented and is primarily aimed at creating an
understanding about management styles and the factors that influence the
choices of management styles in different countries. The information to be
gathered in this research is expected to be beneficial to subsequent
researchers who may want to carry out further studies of cultures and
management practices in different countries. The paper shall be availed to the
university library in order to be beneficial for further research. The
information is also expected to be of value to Pelikan whose input is expected
to help shape the tone of this research. The information may help them identify
any weaknesses in their management styles and structures and be pivotal in
influencing various changes that would help ensure better performance. The
findings can be sent to them vide email if so requested.
The focus on studying different management styles in
different countries has been informed by the influence of cultural practices on
business in different countries (Al-Faleh, 1987). This has led to the striving
to understand the underlying cultural practices and the determination of the
business management styles that would enable productivity in the cultural
context in question. It has been established that there is a positive
correlation between cultural contexts and the relationship between different
people in the business environment (Hofstede, 1980). Cultural differences may
easily lead misunderstandings and the management styles adopted in various
cultural contexts must be able to anticipate and resolve the sources of
misunderstandings with a view to ensuring higher levels of productivity in the
organizations (Al-Faleh, 1987). The most significant fields of study when
studying management styles in different countries are culture and cross
cultural management and their strategic importance in delivering company
objectives.
According to Hofstede(2001), Culture refers to the
collective programming of minds of a certain members of society that
distinguishes them from other societies. It includes a set of belief, customs,
law, knowledge, morals, and other attributes of social interactions. Culture is
passed informally from generation to generation in a given society. Cultural
differences have always presented themselves as some of the most common
barriers to communication and managers need to need to modify the style and
content of their messages in order to pass the intended message to the members
of the organization (Hofstede, 2001). It must also be noted that there are also
significant cultural differences with the various countries and managers need
to be aware of ay such differences in order to remain effective. However,
cultures within most countries present less challenges as they tend to have a
level of similarity that may not adversely affect the relationship between the
members of the organization (Hofstede, 2001). The understanding of culture must
be embraced if an organization is to perform in the different countries that it
may choose to expand into.
Emphasis on the availability of individuals with
multicultural experiences in the management team any foreign organization is
crucial. This is due to the need to ensure that management practices remain
both effective and relevant to the new cultures into which the organization chooses
to operate (Khajehpour,2000). Cross cultural management calls for the
identification of the cultural dimensions in any given society and adopting
management practices that turn the cultural dimensions into a source of motivation
among the employees by embracing practices they would find adorable and
acceptable (Khajehpour,2000). Cross cultural management’s main aim is to ensure
no hitches in business operations occasioned by misunderstandings between the
members of the organization or misinterpretation of messages and instructions
emanating from the management teams.
In his study on the influence of cultural values and
their influence on employee behavior and management practices, Hosftede, 2001
identified the main cultural dimensions as Uncertainty Avoidance, Power Distance,
Masculinity, Individualism, and the Long Term Orientation. Power distance
refers to the level of agreement between the lower level employees and their
senior counterparts on their level of participation in decision making in the
organization. Organizations with a high power distance denote situations where
decisions are made with little or no consultation in a paternalistic style
(Khajehpour,2000). On the other hand, low power distance denotes a highly
consultative environment where decisions are collectively arrived at with lower
level employees in the organization (Khajehpour,2000). Different people prefer
different levels of power distance and their levels of productivity are significantly
boosted if these preferences are met. Societies that embrace high power
distance tend to be more submissive to supervisory authority while those that
do not prefer to be entrusted with responsibilities where they are largely
empowered to make independent decisions. Autocratic leadership can therefore be
acceptable and be more effective in high power distance cultures. A study
conducted on the employees’ willingness to embrace supervisory authority in
three countries (USA, China, and Taiwan) revealed that revealed that the
Chinese tended to embrace supervisory authority the most while the US employees
embraced it the least (Bu, Craig, and Peng, 2001). Individualism as compared to
collectivism refers to the cultural emphasis in a society that focuses the
development and advancement on individuals and the fulfillment of the
individual goals and aspirations. Those who prefer individualism tend to
perform highly when working independently when aiming at achieving the
objectives they have set for themselves. Collectivism on the other hand refers
to the emphasis on the development of a group of individuals in the society as
a unit (Bu, Craig, and Peng, 2001). This may be family members or other
groupings as may be defined in different cultural contexts. It also refers to
the extent to which society members prefer working as part of a team rather
than as individuals. Individuals who prefer collectivism tend to be stronger
and better performers when working in a team. Masculinity as opposed to femininity refers to
the values of assertiveness and competitiveness that is embraced in societies.
Societies that embrace masculinity tend to emphasize the importance of getting
victories over colleagues in working situations. Femininity on other hand
refers to the caring pole which emphasizes quality of life and the importance
of being caring. According to Hofstede (2001), a masculine manager is
assertive, decisive, and aggressive while a feminine manager is often invisible
and prefers to run their functions through consensus. The Uncertainty avoidance
refers to the extent to which members of different societies can accept
uncertainties or ambiguities in relation to their future. This has a bearing on
how much they would be willing to do to avoid the risks concerning the future
and therefore avoid uncertainty. The long-term orientation refers to a
society’s commitment to a future (Bu, Craig, and Peng, 2001). It goes to the
heart of values such as perseverance and how much a society is willing to
sacrifice present comforts in favor of future benefits.
The impact of culture on management styles and
communication styles has been measured in the past by a comparison of various
management and communication styles and their impact on the overall performance
of the organizations (Hofstede, 2001). The goal of any communication process is
to create understanding. Communication usually presumes a perception which
borrows heavily from the cultures of the persons involved. Where these perceptions
are in conflict, the chances of there arising a misunderstanding is often quite
high (Bu, Craig, and Peng, 2001). This calls for a commitment from both the
sender and the receiver to create understanding in order to ensure the
completeness of a communication process. The process of communication can only
be said to be complete where the sender and the receiver reach an understanding
on the matter in discussion. Effective communication is a recipe for teamwork
and synergy across the various functions of any organization. The communication
approach refers to the preference of communication modes that society members
prefer to use in organizational contexts (Bu, Craig, and Peng, 2001). This may
include verbal, written, email and other modes. The amount of value attached to
a communication mode by the intended receiver should be put into consideration
when choosing the communication approach to take. If an important message is
sent through a mode that is of poor value in the eyes of the intended recipients,
the intended meaning is often not created (Bu, Craig, and Peng, 2001). The
perception and attitude towards various modes of communication is highly
dependent on cultural backgrounds of the intended recipients and an
understanding of these cultural aspects is therefore a crucial component in
ensuring the effective communication that leads to effective management of an
organization. Another factor that could affect effective communication is the
use of appropriate language. Multinationals are bound to drop their global
official languages in favor of the official languages in the countries in which
they are operating. Appropriate language denotes not only the words but also
the combination, pronunciation and manner of speech. Another dimension of
language is the body language. Management must be able to promptly master the
elements of body language in any culture as this constitutes a significant
proportion of the communication process. Where the words used are right, the
wrong body language could lead to the erosion or even complete distortion of
the meaning originally intended in the communiqué (Bu, Craig, and Peng, 2001).
This calls for extensive training of the members of the management team that do
not share a common background with the rest of the employees to undergo
communication training to enable effective communication and effective teamwork
in the organization. The style of management adopted in an organization
determines the extent to which the managers are bound to be effective in their
daily operational management of the organizations. Different management styles
bear varying levels of effectiveness depending on the dominant cultural dimensions
in the countries in question. Style can be described as an overall leadership
technique adopted by a manager and the choosing of the most appropriate
management style remains one of the most commanding challenges in modern day
business management philosophy (Khajehpour, 2000). Depending on other factors,
these management styles may either be arrived at after wide consultations or as
a result of the manager’s assessment of the dominant cultural dimensions that
he/she needs to factor in when designing the styles to use. Various scholars
have written on different management styles. However, many of them seem to agree
on a number of styles that include delegation, coaching, assertive, permissive,
autocratic, directing, participatory support, and task oriented. Out of these
styles, four have been identified as largely reflective of the diverse
management styles that managers can adopt in different cultural contexts. The
management styles adopted by managers in various organizations are often a
combination of several styles and not just one style. This is because of the
existence of a variety of backgrounds among the employees of any organization. Managers
need to individually assess the needs of the employees and come up with
management styles that are likely to suit the various organization members at
any particular time. These are as follows:
In directing the idea on what to do, how to do it,
and when to do it is gathered from the employees (Huselid, Becker, and Beatty,
2005). The role of the manager is primarily restricted to that of directing and
guiding the employees in the course of implementation of the agreed tasks
(Huselid, Becker, and Beatty, 2005). This style allows the employees to express
what they view as their potential and helps the managers gauge the employees’
capabilities as per their own assessment. It also enables the manager to gain
the cooperation of the employees in the execution of tasks since the tasks to
be executed as derived from them. This style calls for a manager that is more
experienced than the junior staff and one with the ability to apply effective
communication skills that establishes his authority while avoiding patronizing
the employees and hence avoiding making them lose the initiative they had while
volunteering to define tasks and objectives to be met.
This style focuses on rendering support and
providing confidence to staff members that have been identified to have the
skills and abilities but with little confidence to actualize themselves
(Huselid, Becker, and Beatty, 2005). The communication mode in this case puts
the manager on the same level with the employee where the two communicate as
colleagues. This style is only effective where the manager emphasizes on the
application of a one-to-one communication between him and the employee he
wishes to provide support for. This style call for the managers to be good
communicators and good listeners to ensure effective communication and
subsequent realization of intended objectives.
This management style is often applicable to
competent and highly motivated employees with the aim of empowering them to be
better decision makers (Huselid, Becker, and Beatty, 2005). Here, the employees
are given a broad description of the tasks and objectives of a given tasks and
are left to decide on the operational details necessary to meet the defined
objectives. Proper guidance is necessary to ensure that the delegated tasks are
completed successfully. This style can prove to be useful as it frees the
managers to allocate their time to more important functions in the organization
while ensuring that the tasks not attended to are not neglected. Delegation has
also been identified to have the advantage of ensuring that the organization
continues to have the necessary skills that would ensure smooth transition and
succession in the case that a member of the management team leaves an
organization (Huselid, Becker, and Beatty, 2005). This enables promotion rather
than recruitment of outsiders to occupy the vacancies hence becoming a major
source of employee motivation within the organization as they appreciate the
fact that their chances of advancing through the ranks in the company are
achievable.
Coaching combines elements of the supportive and
directing styles. Coaching is a useful tool for building relationships which
lead to higher levels of teamwork and synergy in the organizations. Coaching is
usually based on the confidence of the manager on the likelihood of success of
the employee under training (Huselid, Becker, and Beatty, 2005). It involves
excellent communication skills as the success of the style is largely dependent
on the ability of the manager and the employee to agree on coaching areas and
coaching objectives as well as the timelines that they need to observe to
ensure effective and time conscious engagement.
Having examined the likely influence on management
practices in different cultures, it is necessary to examine the various studies
conducted on management practices in various countries and the resultant
management styles embraced (Huselid, Becker, and Beatty, 2005). This is
necessary in forming the contextual framework for this research. Iran bears
similarities with many of its neighboring countries which are predominantly
Muslim. The culture in Iran comprises two dominant components namely the
nationalist and Islamic aspects (Teleghani, Salmam and Taatian, 2010). The
nationalist aspect shapes Iran’s preference for Persian civilization elements
such as the calendar systems, New Year festivals and even their preference for Persian
literature (Ali and Amirshahi, 2002). This heritage dates back to as early as
3000BC. The Islamic influence is relatively young and is also believed to bear
a great significance in the cultural beliefs and practices of the Iranian
population. Some minimal level of Western cultural influence has also been
observed in some sections of the population. The culture in Iran is highly
founded on hierarchy where paternalistic systems seem to be widely accepted in
the society (Ali and Amirshahi, 2002). According to Hofstede (1980), Iran can
be termed as a high power distance culture. These views have received
reinforcement from the findings of other researchers (Ali and Amirshahi, 2002;
Khajepour, 2000). This cultural aspect draws from their family structures,
history, religion and mythology. Hofstede (2001) also categorized the Iranian
culture as uncertainty avoidant. Scholars have described the predominant
management styles in Iran as characterized by collectivism, hierarchical
distance, past orientation and evil orientation usually predominated by
feelings of mistrust and conspiracy. Other studies have observed that the
working population in Iran is predominantly the youth who prefer to pursue
individual development hence making the Iranian culture more Individualistic
rather than collective. The family orientation culture has also been
predominant and has had a major influence on the recruitment processes in Iran
with the emphasis being on ‘connections’ rather than capabilities. The high
power distance in the Iranian culture has also resulted in poor information to
lower level employees on company performance hence resulting in a situation
where employees cannot draw a relationship between their efforts and company
performance hence leading to lower productivity levels (Ali and Amirshahi,
2002). The political influence over culture and other spheres of life affects
the business management significantly in Iran as well. Many managers tend to
implement changes in their organizations just to remain in good books with the
ever-changing political class, hence becoming unnecessarily dynamic. The workers in Iran are rarely briefed on the
company performance and are therefore unable to relate to the company as they
should (Ali and Amirshahi, 2002). This is in line with the autocratic
management style that scholars have in the past associated Iran business
management with. Other countries such as Germany tend to emphasize on
individualist concepts where the development of employees is mainly based on
the individual. This, according to Hofstede (2001) enhances productivity hence
leading to the development of the economy. He further observed that the
developed countries tended to have an individualistic culture dominating their
labor practices. Like their Iranian counterparts, the culture tends to be past
oriented where the management seeks to draw from experiences from the past in
order to reach decisions with the aim of avoiding unnecessary risks. The
decisions in Germany therefore come after in-depth analysis and study while
embracing wide spectrum in exploring viable options and carefully evaluating
the implications of such decisions (Taleghani, Salmam and Taatian, 2010). Similar
studies in Japan reveal that the Japanese managers emphasize on collectivism.
The staff members are organized into working groups and the supervisory efforts
are mainly directed at the working group rather than the individual
performances. Cultural norms in Japan are of a major importance in the
determination of the working of the organizations. Most of the actions of the
Japanese worker are controlled by his colleagues in the working groups to which
he belongs. The departure of a member of a working group from the organization
is therefore seen as an embarrassment and an indictment to the whole working
group. The Japanese have a culture of showing each other kindness and this is
expressed in their interactions in the organizations where they work (Taleghani,
Salmam and Taatian, 2010). Other cultural values of great significance in the
Japanese culture are moral pressure of the society and the feeling of
commitment. Commitment feelings are a product of good deeds of other employees
and the interactions between the Japanese workers is mainly a manifestation of
these commitments. Moral pressure refers to the emphasis on the people to
observe the set moral standards in the society (Taleghani, Salmam and Taatian,
2010). Japanese managers tend to embrace this philosophy of kindness and
friendship by showing more interest in solving the personal problems of their
juniors. This in turn inspires higher levels of commitment to the managers and
the organization. Similar studies into management practices in China revealed
that the Chinese people do not involve the lower level employees in the
decision making processes of the organizations. Their recruitment and promotion
practices are also influenced more by the relationship between employees and
the senior executives than by the experience and skills displayed. On the other
hand, the American society emphasizes individual excellence and advocates for a
system that allows the thriving of individuals irrespective of the
‘connections’. According to Hofstede (2001) America is the most individualist
country in the world. The American society also lays little emphasis on family
as far as the working environment is concerned with the majority of Americans
tending to avoid offering jobs to their friends and relatives. Americans have a
well developed sense of self consciousness on which they view themselves as
highly innovative and productive individuals capable of achieving any goal they
set out to achieve. Swedish managers emphasize innovativeness and personal
development of their staff members. They tend to embrace risk taking and enjoy
testing their newly innovated ideas. They tend to trust their instincts and lay
little emphasis on data analysis as a crucial step in making decisions. They
are mainly action oriented and team-oriented and are generally friendly,
sociable and easy going.
As has been
outlined in the literature review above, cultural practices in various
countries becomes the core determinant of management styles that the
organizations must adopt in order to ensure that their organizations perform to
expectations. Creation of synergy and understanding across cultures is very
instrumental in ensuring a company’s success. Cultural beliefs and practices
are deeply entrenched into the philosophies and can be a major source of
disconnect if organizations choose to go contrary to them in their management
practices. Employees tend to perform well when the organizations’ management
practices are in line with their expectations as informed by their cultural
backgrounds. This research shall seek to establish which cultural practices in
Germany and Iran are of relevance to organizational management styles and shall
relate these practices to the prevailing management practices practiced in the
two countries. The research shall also benefit from the insight of this and
other studies in providing recommendations on the appropriate management
practices that would help improve performance at Pelican in line with the
dominant cultural practices in the two countries. The hypothesis that this
research shall be proving true or otherwise states that: cultural practices
have and ought to have a significant bearing on the choice of business
management styles to be adopted in any society to in order to ensure
sustainable good company performance.
The research shall be conducted through the
examination of secondary data and through primary data using surveys and oral
interviews. The secondary research shall therefore be conducted using sources
such as company official websites, industry analyses by international research
and marketing bodies, cultural and heritage publications by the Iranian
authorities, research findings focusing on management practices at Pelikan Iran
and Germany, and other credible sources. Reliable information about the
demographic and cultural practices in Iran will be obtained through the Iranian
embassy and reliable online sources that are likely to provide reliable
information. Information from company publications, online or hardcopy will
also be useful in drawing insights into various philosophies embraced at the
two branches. Due care shall be taken to ensure that the sources are reliable
and therefore lead to generation of a credible report. The use of surveys or
written questionnaires has been identified as the best method of primary data
collection due to the distance between the researcher and the target
respondents. The surveys are expected to be reliable as the written information
to be relayed is not prone to manipulations and other process inefficiencies.
The population for the study shall be the total
number of employees engaged by Pelikan in both Germany and Iran. Due to time
constraints, only 15 (fifteen) employees from each of the two companies shall
be surveyed. Out of the thirty respondents, 12 (twelve) shall be management level
staff while 18 (eighteen) shall be lower level staff members. This survey shall
be administered through email where the respondents shall access the
questionnaires on mail, fill them in and return by email. On top of the thirty
respondents by written interviews, oral interviews shall be conducted on two
embassy officials with in-depth knowledge about Iran and their cultural
practices and general business management styles in Iran. The same shall be
done in the case of Germany. Hence the total sample size shall be thirty four
(34). The sampling method shall be judgmental and shall be based on the
perceived ability of the correspondent to provide the information needed for
this research.
The main emphasis during data collection shall be
the integrity and the reliability of the information obtained. Oral interviews
shall provide the advantage of clarification on the information sought. On the
other hand, surveys shall provide the cost effective way of obtaining
information from correspondents who are not easily accessible and will also
provide the advantage of relaying information as originally encrypted by the
respondent with little chance for data manipulation or loss. The questionnaires
shall be phrased in easy-to-understand language in order to ensure respondents
do not shy away from answering due to lack of understanding of the questions
put forth. The researcher shall also be keen to provide prompt clarifications
for any issues that the respondents may need clarifications on.
Data analysis shall be mainly qualitative. The
various cultural practices shall be identified in the order of significance as
outlined by the respondents and the corresponding level of importance as would
have been established in terms of the level of satisfaction these employees
would have if such practices were to be incorporated into the company’s
management practices. Further to this, corresponding management practices at
the two companies shall be analyzed and the underlying rationale for their
practice identified. Their level of importance to the employees as gathered
from the surveys shall also be considered. Finally, the research shall make use
of the gathered secondary sources to attempt to identify a befitting
combination of management styles that would be able to correspond with the
fundamental cultural practices with an aim to making recommendations for
improvement or otherwise to Pelikan Hardcopy International Ltd.
The lack of personal contact with the targeted
respondents is likely to prove to be the biggest challenge in securing their
goodwill to be able to respond to the surveys. The researcher shall try to
overcome this weakness by impressing on one of the cooperating respondents to
act as a link between the researcher and his colleagues hence encourage them to
participate fully. The availability of interviewees for an interview may not be
assured. This may be resolved through communication with such respondents where
the researcher should be able to meet them at the place and time of
convenience.
The resources needed for this research shall mainly
be the internet and the finances needed to ensure effective follow up with
survey respondents as well as the finances to organize and administer interviews.
The main activities shall be as follows: determination of research subject;
literature review; agreement on topic with supervisor; determination of
methodology; scheduling of interviews/ surveys; creation of interview/ survey
questions; actual data collection; compilation of data; data analysis; review
of secondary data; and Final report preparation. The milestones in this process
shall be the agreement of research topic; scheduling of interviews and surveys;
and data collection. The schedule is as outline in the Gantt chart below:
For more theory and case studies on: http://expertresearchers.blogspot.com/
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